... and here is $1 Trillion in $100 bills.
The Federal Reserve can never raise interest rates again. I simply can not see how they can do it, without bankrupting the US Government, or most of Europe and Japan.
To those of you who say the Federal Reserve or other central banks don’t control long-term rates - my answer is “nonsense.” QE, Operation Twist, buying GSE debt, Helicoptor Money - all have been, or can be used, to drive rates all along the yield curve. The Fed is an (unconstitutional) soviet style economic planning bureau that will basically destroy our economy, just as the soviets destroyed theirs.
Since just a few BANKS own the FED, I suggest THEY pay it off out of profits for the next 100 years.....??? LOL...
A 20% across the board import tariff balances the budget and strengthens the US domestic economy. THIS HAS TO BE DONE. THERE IS NO OTHER WAY. Pay now or collapse later.Accept a little inflation now or economic death tomorrow.
I was just scolded last week by a young PhD economist in our gov’t security meeting, the following Paul Krugman brainwash toxin:
“We are in a new economic paradigm where national debt, money suppy, the velocity of money, and zero / negative interests no longer matter because our economy is based on innovative productivity.”
I hope someone rubs his manchild nose hard in the pavement when we All Fall Down...
There was virtually NO mention of the debt (that I heard) at either convention, especially at the Democratic convention. Instead, all the talk was about much more free stuff. In fact, inviting the rest of the World in to partake of our free stuff. The total disconnect from reality is just stunning. This is exactly how Venezuela got in the trouble its in right now.
If interest rates were at a sensible rate that gave a sensible return to savers, say 5%, then the interest on the debt expense annually would be $1,000,000,000,000, or 20% to 25% of the federal budget.
Huh? . Wait, I though Obama said the sun was shining, birds are singing and all is rainbows and unicorns? This article is too dark,
Nobody running for office is very interested in addressing the debt. Party at the end of the world, everyone!
When they can no longer find enough people to willingly buy bonds at those artificially low rates, they will have to print money.
Oh wait, they already are - the Fed is now a huge “buyer” of Treasury debt, with money that they simply make themselves.
When that becomes prohibitive, they will have to force people to buy their debt.
Oh wait, they already do. They have increased the amount of Treasury debt that banks must hold, to be considered “solvent” by the Government regulators. Technically, they refer to that as financial repression (not a joke).
Then they will have to repay debt holders with IOUs. Already do, for a large percentage.
Then they will have to take more from citizens. Ditto.
Finally they will have to stop paying the bills. Party over.
Even a single percentage point raise would pretty much double the amount of interest that would have to be paid yearly.
20 trillion? What drugs have you been taking? Unfunded obligations are closer to 120 trillion.
All those baby boomer pensions and all that unearned SSDI funding? Medicaid?
We are going to default on those obligations or we are going to crash.
... and here is $1 Trillion in $100 bills.
I no longer care about the national Debt, but I care very deeply for how little gold I own. I need much more.
Cantorize the Mooselimb bass turd!!!
And the ongoing and ever increasing third-world poverty immigration to Western countries is gasoline on the fire...well done, Western governments! May you all rot in hell (following public execution - after a fair and speedy trial).